HeidelbergCement shares surge 18% on reports of Rs 10,000-crore buyout interest from Adani's Ambuja Cements

Shares of HeidelbergCement spiked by as much as 17.95 percent, reaching Rs 257.85 per share on the BSE.

Trading volumes for HeidelbergCement also saw a significant jump on Monday, with approximately one crore shares traded on the BSE and NSE combined, compared to an average weekly volume of two lakh shares.

According to a report by The Economic Times, billionaire Gautam Adani-led Adani Group has entered discussions to acquire the Indian cement operations of Germany's Heidelberg Materials.

The acquisition, which is expected to be spearheaded by Adani’s Ambuja Cements, could be valued at around $1.2 billion (Rs 10,000 crore), as per the report.

Despite the news, Ambuja Cements shares were down over 3 percent, while Adani Group shares rose by more than 1 percent in early morning trading on the BSE.

The potential acquisition would add HeidelbergCement India’s 14 million tonnes and Zuari Cement’s 7 million tonnes of production capacity to Ambuja Cements, significantly boosting Ambuja's current output of 89 million tonnes, the ET report said.

This move aligns with Adani Group’s goal of reaching 140 million tonnes of production capacity by 2028, according to the report.

HeidelbergCement India has delivered modest returns this year, rising over 3 percent in the past month and just over 2.5 percent year-to-date (YTD), and over the past year, the stock has gained more than 23 percent.

Meanwhile, Ambuja Cements shares have fallen by over 13 percent in the past three months but are up more than 14 percent YTD, with a 36 percent return over the last year.

As of 11:25 am on Monday (Oct. 7), HeidelbergCement India shares were trading 9.06 percent higher at Rs 238.40, with a market capitalization exceeding Rs 5,402 crore on the BSE, while Ambuja Cements shares were down 1.44 percent, trading at Rs 601.15.